In a significant move to integrate traditional Wall Street infrastructure with blockchain technology, Securitize, backed by BlackRock, and Computershare are set to bring a portion of the $70 trillion US stock market onto the blockchain through tokenized equities. This development allows listed companies to introduce tokenized equity, known as Issuer-Sponsored Tokens (ISTs), in addition to their existing shares, providing investors with the flexibility to hold stocks through either traditional systems or digital wallets.
The collaboration is part of a broader initiative to make tokenized shares compatible with current market regulations while introducing new methods for holding and transferring assets, including wallet-based ownership and expedited settlement. Transfer agents, such as Computershare, play a crucial role in this system by maintaining shareholder records and handling corporate actions. By integrating at this level, the companies aim to avoid a common workaround in the crypto space where tokens represent claims on shares rather than the shares themselves. Securitize, a blockchain-based firm, specializes in enabling real-world assets like equities and funds to be issued, traded, and managed in tokenized form on blockchain networks.
Notably, the firm has issued a $2.5 billion tokenized money market fund for BlackRock and has collaborated with the New York Stock Exchange to build its tokenized equity platform. Securitize also plans to go public later this year through a SPAC deal with Cantor Equity Partners II. Under this setup, Computershare will serve as the transfer agent for tokenized shares, managing records and processing events such as dividends or stock splits across both formats. Securitize provides the underlying technology, with the blockchain component operating primarily in the background.
The tokens are designed to represent direct ownership, rather than derivatives layered on top of existing stock. According to Securitize CEO Carlos Domingo, 'ISTs do not rely on derivative tokens that sit on top of underlying shares.
They provide US issuers with the ability to create direct equity ownership in token form.' The reach of Computershare, which serves over 25,000 companies and acts as a transfer agent for approximately 58% of the S&P 500, could give this effort the necessary scale. This structure also allows issuers to maintain control over their shareholder base, a critical requirement for public companies. As stated by Ann Bowering, CEO of issuer services at Computershare North America, 'Our focus has been to empower US-listed companies to issue tokenized equity while retaining control.'